Ms.Ohea Sales exp I(enco0 Exercise 2. For the coming year, Saad Company anticipates the following information 74000 $8 per unit Selling price Cont 86000 $3.7 per unit Variable expense $37,400 374 00 Fixed expense Fee 20,000 units Units of sales openating 48000 income Required: 1. Compute the break-even point in terms of units must be sold (at budgeted sales). 2. Compute the break-even point in dollars. Compute CM ratio to 2 decimal places. 3. Compute the margin of safety 4. Compute the degree of operating leverage 5. 6. If next month sales will(decrease by 10%, what will be the percentage change in net operating income? Smyer Corporation makes a product with the following standard costs: Standard Standard Price Standard Cost Quantity or or Rate Per Unit Hours Direct 7.1 pounds $5.00 per material $35.50 The company reportedthe following result's concerning this product in July: Originally budgeted standard output 4,700 units Actual output 4,500 units Direct Materials purchased and used in production 36,500 pounds Actual price of direct materials Required: $5.10 per pound a. Compute the materials quantity variance. b. Compute the materials price variance